A Multi-Period Supply Chain Network Design for Biodiesel Fuels: The Case of Turkey

A major portion of energy consumed worldwide is derived from non-renewable energy sources. According to the International Energy Agency (IEA), the oil reserves that can meet the rising global oil demand around 1.7 trillion barrels, which may last about 51 years. Like all fossil fuels, petroleum is a well-known cause of pollution and global warming due to the harmful gases it releases. At this point, biomass energy emerges as a promising alternative energy source. Among alternative biomass products, biodiesel is the most widely used liquid biofuel as substitute fuel type for fossil fuels. Obviously, designing a cost effective supply chain is an essential component of a sustainable energy policy that aims to successfully substitute biodiesel for fossil fuels. In this study, we develop a mixed integer linear programming model minimizing the cost of supply chain network of biodiesel. The proposed model optimizes locations of processing facilities, technology to be used in bioprocessing, and amount of material flow. The main contribution of this work is that it will be the first study dealing with the Turkish Biodiesel supply chain, to the best of our knowledge. To prove the validity of the model, a country-wide supply chain network for biodiesel is designed using real data collected from Turkish market.